Glossary
What is Basis
The gap between the futures price and spot: a positive basis means futures trade above spot, and on perpetual contracts funding keeps it close to zero.
How it works
Example
Spot is 62,000, the future 62,310: a $310 basis, which is 0.5% of spot. On a perpetual such a premium usually comes with positive funding.
Common mistake
Taking a wide basis for a reversal signal: it shows leveraged demand is lopsided, not where price goes next.
Read next
Related terms
Frequently asked questions
- Where can I learn Basis step by step?
- In the Trading OS Academy: “How an exchange matches buyer and seller”.
- What is Basis related to?
- Perpetual futures; Funding rate; Mark price; Index price.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
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